I think there's a world market for maybe five computers - Thomas Watson, IBM
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Open source 'costs proper software companies $60 billion a year'
A VERY DUBIOUS NEW report claims that "Open Source software is raising havoc throughout the software market” and calls it “the ultimate in disruptive technology”.
The Standish Group International, who pompously call itself “the leader in spotting future trends”, and also claims to be the bearer of “reliable IT advice built on a solid foundation of primary research” has published a report that suggests the outfit is more like a bunch of corporate payrolled blue pinstripe suits.
The “study” claims that Open Sauce is causing “a real loss of $60 billion in annual revenues to software companies” on a yearly basis, as if to say that the thieving saucers snatched the money straight from the wallets of firms like Oracle, Apple, Adobe and the Vole. But to paraphrase in slightly more accurate terms than the Standish Group’s chairman, Jim Johnson, what the report actually points out is that: open source is so popular, that fewer people are buying its expensive and often mediocre software counterparts, making the corporate giants lose out on a tasty $60 billion a year slice of the market. Shame. Pass the tissues, sniff.
Dubbing itself "Trends in Open Source", the report outlines details of what the group reckons are the top 10 drivers that are influencing decisions on how IT is adopting open source technology. The fact that users don’t want to buy rubbish, expensive software when they can get rather good freebies, is not exactly top of the Standish Group’s list. Instead, the “shocking” use of open sauce by commercial and government organisations is mentioned as a driving factor by none other than former President of Oracle OnDemand, Timothy Chou.
We would have told you more about the “thoughtful, objective and extremely useful” study, but we couldn’t be bothered to shell out the $1,000 per copy that Standish wants for it. Personally, we find that a bit greedy after all the money they were probably paid by the Vole and its mates to write the report in the first place.
We'll just wait for the Open Sauce version, if that's OK. µ
L’Inq
The dubious
report (for only $1000)
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Even by this websites standards this article was not written objectively.
Who is losing $60 billion a year is a matter of perspective.
I where a software vendor, I would of course argue that Open source is cost me 60 billion a year , if I where a consumer , I might also argue that software vendors are costing me 60billion a year too much !!
I think more appropriatly the message is that consumers and companys are saving 60 Billion a year with Open Source. :-)
Coasting who ? "proper software companies" who are they. I think it just to bad they cannot get their second or third Ferrari in the garage of their multi million dollar homes. Who's pocket does this $60 billion come from ? They will not be happy untill they have us working as slaves, but I guess that is the plan.
"Open Source saves businesses $60 billion a year"

"a real loss of $60 billion in annual revenues to software companies"

... doesn't that really mean:

"a real savings of $60 billion in annual expenditures by software users".

Not to mention money not spent by open source producers on products from Standish Group International.

Proposed Standish Group motto:

First we take <strike>Manhattan</strike> GCC, then we take <strike>Berlin</strike> G++.
Saves $60 billion a year. 
Always amazes me how the captains of industry hate it when someone achieves the efficient economy they all claim to be seeking.
Where something is essentially free, many people will opt for it where they wouldn't have otherwise shelled out for something at all.. and actually few people with money and the intent to spend it will be swayed away from a purchase by a freebie of pretty much the same thing.

The millions of linux installations around, are NOT potential lost sales.

I once worked this effect out once, and came to a rule of thumb of 10-20x exaggeration wherever someone claims there hard-earned money is being denied them by someone else handing out free stuff.

I have about 4 different linux distros on my different machines, have microvole or applerot lost four sales? If linux wasn't available, I wouldn't have purchased 4 licences just to muck about (Yaaarrr would have pirated instead). Simple. Fact is, open source is enabling in so many ways, it's probably generated more wealth than it has 'stolen' from the Big Bloatware industry.
sometimes theres nothing better than a biased report on a biased report. Turns out two wrongs do make a right. Whether or not the figures are accurate (unlikely), the article suggests that the open sauce (haha) community is having a noticable impact on the all too long running software monopolies. imo that light at the end of the tunnel is getting brighter and brighter...
I'm not entirely sure the report is paid by Vole, Apple, etc etc.

Rather, I think it uses outlandish abstract to attract buyers to pay $1000 for the entire report.

Some of today's CxO's are so gullible, they are willing to pay any amount for 'authoritative' 'research' reports.

Oops, was that out loud?
Open Source "saves proper software companies $60 billion a year".

What's with you guys? So, the commercial side is loosing the edge on the competition. Or is it that software develops the same way whether it is free or commercial? Meaning, if software ends up the same or just as capable why would you not acknowledge that the end result is a savings to business and thus to consumers?

Business would rather spend more of that money on R&D, on expansion, on better wages for employees (LoL at that one). But the fact remains that the money is still somewhere. It isn't like the money disappeared for no good reason. The money is still there. They can still choose to spend that money on something else.

In the end, Open Source will win over closed proprietard software. Why? Because development of packages ends in the same way. The question is just in how you get to that same end place.

I say this is wonderful news and that companies that don't understand the same about the desktop OS are going to be living in a terrible time when that time comes.
Despite my mastery of spin-doctoring & mathematics, it occurs to me that the article's title would more properly read: Open source 'saves businesses $60 billion a year'.

Would you like fries with that?
IANAL
Of course looking at it from the other way around it has saved companies $60 Billion to be spent on innovations elsewhere that isn't IT software tax. Maybe they aren't believers in creative destruction and are trying to stifle the industry by holding back progress through siphoning money to out of date business models.
another way to look at it is that open source contributes 60bills to the economy and consequently deserves support and encouragement, not drowning in a sack by embittered company accountants

the conclusion confirms what many have long suspected, that some software companies demand excessive amounts of money for uncompetitive products because they exploit technophobia and ignorance.

if they want more money they should raise the standard of their software above the amateur so that its actually worth buying, but that requires the imagination to see things from somebody else's point of view
The correct way to restate the report's conclusion is "Open Source saves CUSTOMERS $60 Billion a year."

Whereby business decides the cost if sick days is x billion but fails to deduct the gains of free overtime!

I have no idea how much my outlay would be without open source software, god every time I wanted to deploy a mysql database I would be in trouble, I would have to buy a client to develop Java and a client to access cvs on windows for visual studio.

I would have to buy a client to replace subversion and bugzilla... and so on

So while it may hurt companies selling second rate products I doubt it hurts companies that are offering something truly innovative or unique!

How much would facebook lose if they didn't allow community development and had to do this themselves!
Is there an open source version of the report? I can't afford the $1000 price tag.

Companies are losing out because they aren't producing what people want. If it was worth buying people would pay for it.

Free usually implies you have to work for it.
..merely 12 pages?! Well,they should rename that report "The Golden Booklet"! :P
These people are dinosaurs of an era which will soon come to pass;and they will fade away exactly like the real dinos did.